Israeli economists rallying against crypto have what to lose — their jobs

Many economists and the head of Israel’s bank are against a proposed crypto system, but they have what to lose.

Netanyahu says that he wants to switch the country’s banking system to crypto, in order to bypass twelve Western countries’ planned sanctions.

Ten of these countries have recognized a Palestinian state, and the two others advocate for a two-state solution. They view the expansion of settlements as an obstacle to achieving a Palestinian state. So they are preparing to enact sanctions (which would include restricting access to international banking systems) against anyone doing business with the settlements. These sanctions would conceivably go against Israel proper, since Israel does business with the settlements.

Netanyahu wants to protect Israel against these actions, so he’s proposing that Israel switch their banking system to a crypto system, similar to what Russia did.

Netanyahu refuses to give in to these nations, as that can jeopardize Israel’s security. He feels that after October 7, the lesson Israel has learned is that it’s dangerous to give away land.

Leading Israeli economists and the Governor of the Bank of Israel have come out strongly against Netanyahu’s plan. They feel that it would isolate Israel from the international community, and that it would have a detrimental effect on Israel’s economy. They want Israel to diplomatically resolve differences with these Western countries.

It seems that these economists feel that giving away land is negotiable, whereas isolating Israel economically from the international world is catastrophic.

It’s important to note, that these economists generally have what to gain with their position; because if Israel goes crypto and isolates itself from the international community, then this can take away their jobs. That’s because reportedly these economists teach at universities which receive international funding, and Western sanctions would stop this funding. Also, economists need international data (and other interactions) in order to do their research, and sanctions would dry that up.

The Governor of the Bank of Israel is also not objective. If the system switches to crypto, then certain powers of the Governor (which are part and parcel of the current banking system) would disappear, and he would lose the tools he had to influence the economy.

The crypto system can work. Russia has been very successful in implementing its own crypto system in order to bypass sanctions from the Western world. Although Israel is not exactly the same as Russia, and might be more reliant than Russia for imports etc., nevertheless a crypto system would enable Israel to trade despite the sanctions. Furthermore, the way the world is going, many countries might switch to crypto and digital banking, and go off the current international money system. If that happens, then Netanyahu‘s plan to create a crypto system will be very beneficial, as it will put Israel in a position where the country is prepared for the new way of banking.

The bottom line is, that regarding banking, nobody knows for sure which is the right way to go. But what does seem clear, is that Israel can no longer cater to the whims of foreign nations that want to undermine its security. Israel can no longer afford to give away land as it did before October 7. Israel knows that in order to be secure, they have to do what’s right for Israel, and not cater to the whims of foreign leaders who have their own biases.

Bibi said in an interview, that he thanks the Governor of the Bank of Israel for his advice, but that he needs to do what he knows is right. And he added, that he was instrumental in bringing financial prosperity to Israel.

Israel is doing what they feel is right. They no longer subjugate themselves to foreign pressure. They are no longer willing to bow down and compromise fundamental security principles, no longer afraid of what international leaders might say. Israel is learning to fend for itself.

The very existence of a crypto system is a G-dsend. By Divine Providence, the world developed a system which can now give Israel refuge and stability, despite foreign pressures.

The Almighty is watching over His chosen people. The future looks bright.